Danny Weber
Toto, known for smart toilets, is an unlikely AI winner as its ceramics division supplies electrostatic chucks to chip makers, driving substantial profit growth.
Toto, the Japanese manufacturer famous for its smart toilets and Washlet bidets, is an unlikely beneficiary of the artificial intelligence boom. Away from bathrooms, the company runs an advanced ceramics unit that makes components for NAND memory chips. Soaring chip demand has sent revenue at this division sharply higher.
Toto reports that its ceramics business expanded 34% from the previous year and now generates 55% of operating profit, which totaled 53.8 billion yen (around $343.5 million). Looking ahead, the company forecasts roughly 27% growth for the segment next year and is committing an additional 30 billion yen (about $192 million) to scale up mass production and R&D.
The cornerstone of Toto's semiconductor offering is its electrostatic wafer chucks, or E-chucks, which use electrostatic force to secure silicon wafers during chip production. The company ranks as the second-largest global supplier of these components. Its ceramics division, established in 1984, also manufactures parts for large LCD panels.
Toto's experience highlights just how far the AI boom is spreading—benefiting not just chip giants like NVIDIA but also firms in surprising corners of the economy. Similar stories are popping up: Japan's Kao earns money from cleaning compounds used in semiconductor production, and Ajinomoto is investing in insulating films for motherboards. At the same time, there are worries that an overheated AI market could trigger a sharp correction.
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